Category Topic 5

Same crisis, different bucket

The Asian crisis of 1997 can in some regard be seen as an analogous integration of the current Euro crisis and the financial crisis of late 2008. From 1970 up until the late 90’s, new diversification opportunities and the promise of a high rate of return saw a high influx of foreign direct investments within […]

Super-massive black holes in the wallets of EU citizens, is this the end?

On 1 January 1999  the Euro came into effect and in the years to follow countries such as Greece, Portugal, Ireland, Spain and Italy joined the euro, after allegedly complying with the 3% cap on borrowings as set forth by the EU guidelines. Since the Euro was initiated it became clear that the Euro was […]

12 September: Do or Die for the EU

“In nearly 20 years of dealing with EU issues, I’ve never known a state of affairs like we are in now. It really is a very, very difficult fix and it’s far from certain that we’ll be able to find the right way out of it.” (Euro zone diplomat) 12 September is a crucial day […]

Worlds apart not that “apart” anymore

An introduction to Argentina’s woes In 2001 a South American economic powerhouse known as Argentina, had to default on $132 billion in sovereign debt. This was the largest public debt default in the history of the world and caused the entire national economy to contract by 18%. One might not realise the magnitude of this […]

Greece debt crisis

Greece’s, debt crisis was built up by a long history of problems with its public debt. Many years of unrestrained spending, cheap lending and failure to implement financial reforms make the Greek government badly exposed when the global economic downturn struck. The recession made it difficult to sustain their borrowings since the tax revenues were […]

Greece the problem maker

Greece the problem maker In 2001 Greece joined the Euro. Everything went well at first and Greece was living beyond it’s mean even before it joined the Euro. After it adopted the single currency, public spending went through the roof. For example public sector wages increased by 50% between 1999 and 2007. In 2008 the […]

Greece: Yes it is a crisis!

By: Elmé Naudé To understand the crises that Greece and the rest of the European Union find themselves in, there has to be an understanding of how the EU existed and why. Before the Euro was introduced, governments in Greece, Spain and Ireland, among others, had to pay a lot more to borrow money than […]